With the wildfires moving away from Santa Monica, attention is turning to the aftermath and necessary efforts to protect consumers from both active theft and the more insidious issues of price gouging.
Efforts to protect fire victims have begun with the State’s top law enforcement officer.
California Attorney General Rob Bonta issued a consumer alert following the Governor’s declaration of a state of emergency in response to the Palisades Fire. With the fire driving thousands of individuals from their homes and forcing them to look for aid wherever they can, Attorney General Bonta reminded all Californians that price gouging during a state of emergency is illegal.
He said Californians who believe they have been the victim of price gouging should report it to their local authorities, which is the Santa Monica Police Department or City Attorney’s office (smconsumer.org). Complaints can also be filed with the Attorney General at oag.ca.gov/report.
“California’s price gouging law protects people impacted by an emergency from illegal price gouging on housing, gas, food, and other essential supplies,” said Attorney General Bonta. “If you see price gouging — or if you've been the victim of it — I encourage you to immediately file a complaint with my office online at or contact your local police department or sheriff’s office.”
California law generally prohibits charging a price that exceeds, by more than 10%, the price a seller charged for an item before a state or local declaration of emergency. For items a seller only began selling after an emergency declaration, the law generally prohibits charging a price that exceeds the seller's cost of the item by more than 50%.
Local officials also warned bad actors not to target fire victims.
“Los Angeles County residents should not have to be burdened with price hikes by unscrupulous businesses when they are already dealing with the disruption and stress of life-threatening emergencies,” said Rafael Carbajal, Los Angeles County Department of Consumer and Business Affairs Director. “We stand ready to investigate reports of price gouging and to hold violators accountable.”
Price-gouging protections remain in effect for 30 days following an emergency declaration. For contractor-related services, protections extend up to 180 days. Business owners and operators must maintain detailed records of pricing before, during, and after the declared emergency. Failure to comply with price gouging laws can result in fines up to $10,000 or one year in jail, or both.
The law applies to those who sell food, emergency supplies, medical supplies, building materials, and gasoline. The law also applies to repair or reconstruction services, emergency cleanup services, transportation, freight and storage services, hotel accommodations, and rental housing. Exceptions to this prohibition exist if, for example, the price of labor, goods, or materials has increased for the business.
Violators of the price gouging statute are subject to criminal prosecution that can result in a one-year imprisonment in county jail and/or a fine of up to $10,000. Violators are also subject to civil enforcement actions including civil penalties of up to $2,500 per violation, injunctive relief, and mandatory restitution. The Attorney General and local district attorneys can enforce the statute.
The DCBA also has the ability to take reports of gouging via stoppricegouging.dcba.lacounty.gov or by phone at (800) 593-8222.
Carbajal said DCBA investigators are actively monitoring prices in impacted communities and coordinating with local prosecutors to address alleged violations. Price gouging laws have been enforced in other Los Angeles crisis situations such as the Rancho Palos Verdes landslides, the Bridge Fire in the Angeles National Forest, and the Franklin Fire in Malibu.
The City of Santa Monica also incorporated efforts to combat price gouging in their recently passed emergency ordinance. The local rules included all the previously established rules but also called out landlords trying to raise housing prices.
“During the period of the local emergency, no landlord shall endeavor to evict a residential tenant, including serving a notice to terminate tenancy based on the presence of unauthorized occupants or pets, if the occupant or pet has been displaced due to a Palisades Fire evacuation order or warning or poor air quality conditions related to the Palisades Fire,” said the order.
Councilmembers said predatory leases were already hitting the market, just days after the fire started.
“I want to say that I've had some discussions with the City Attorney's Office around price gouging,” said Councilwoman Caroline Torosis. “I think we're all very concerned about that, and I understand that there might be a regional anti price gouging effort coming into place. I know that that's going to be part of the ratified order that the county is doing on Tuesday. And I just, I think it's important that we all collaborate regionally with respect to price gouging, specifically around tenancies.”
